Criteo 101 Investor Presentation July/Aug 2019 Safe harbor - - PowerPoint PPT Presentation

Investor Presentation July/Aug 2019

Criteo 101

2 • 2 •

This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, projections, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition and other actions by our counterparties. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation, and nothing in this presentation should be regarded as a representation by any person that these beliefs or assumptions will take place or occur. You should read the Company’s most recent Annual Report on Form 10-K filed on March 1, 2019, and in subsequent Quarterly Reports on Form 10-Q, including the Risk Factors set forth therein and the exhibits thereto, as well as future filings and reports by the Company, completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward- looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides.

Safe harbor statement

3 • 3 •

Stock information and key financials

Ticker: CRTO Stock Exchange: NASDAQ Global Market CUSIP: 226718104 Shares Issued1: 66.2M Stock Ownership1:

1 As of June 30, 2019 2 At constant currency

FY 2018 Financials

• Revenue:

$2,300M, (1%) at cc2

• Revenue ex-TAC:

$966M, +2% at cc

• Adjusted EBITDA:

$321M, +0% at cc

• Adj. EBITDA margin:

33% of Revenue ex-TAC

• Free Cash Flow:

$135M, 42% of adj. EBITDA

Free float 93% Founders, NEOs, Management & Employees 5% Treasury stock 2% Idinvest & Yahoo! Japan 1% Core solution 90% New solutions 10%

Q2 2019 Revenue ex-TAC breakdown

4 • 4 •

A global company with scale and broad reach

Advertisers (incl. 1000+ Brands) Criteo IDs Annual ecommerce sales App Developers connected to Direct Bidder Publishers connected to Direct Bidder

$800B+ 20,000 2B 3,800+ 200+

Ads served in 2018 Employees (incl. 720+ in RD/Product)

2,900 1,300B+ Countries (with 31 offices) 95+

5 • 5 •

Introducing the renewed Criteo leadership team

Jess Breslav

Americas

Kenneth Pao

APAC

Shruthi Chindalur

EMEA

Thomas Jeanjean

Platform & Operations

Cédric Vandervynkt

Web

Geoffroy Martin

Supply & Retail Media

Alex Valle

App & Store

Benoit Fouilland

CFO

Diarmuid Gill

CTO

Isabelle Leung-Tack

Global Communications

Ryan Damon

General Counsel

Denis Collin

People Management

JB Rudelle

CEO

6 • 6 •

Shopper Data Platform Technology Scale/ Reach

We have strong core competencies

Market & Trends

8 • 8 •

Digital advertising’s share of global ad budgets continues to grow

Source: Zenith Advertising Expenditures Forecast

40% 50%

2018 2020

9 • 9 •

Digital ad spend has long overtaken TV ad spend

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

$0B $300B TV Digital

Source: MAGNA | Data for 2017 and beyond are forecasts – Created with Datawrapper

10 • 10 •

Paid Display is the #1 Ad Spend category globally

Source: Criteo & Euromonitor, State of Ad Tech 2019

16% 14% 13% 10% 10% 9% 9% 9% 9%

Marketing Budget Allocation by Activities, N=901

Paid Display Social Media Marketing Traditional Marketing (1) Email Marketing Content Marketing SEO (2) Search Advertising (PPC) Landing Page/Website Affiliate Marketing

(1) Print, Direct Mail, TV, Radio Ads (2) Search Engine Optimization

11 • 11 •

Northern Europe and Japan are mobile leaders.

Mobile marches on

Source: Criteo, Q2 2018. Base: sales weighted aggregate, Apps excluded (see Methodology).

New Zealand 44% Austria 44% Switzerland 43% Brazil 43% Taiwan 42% Italy 41% United States 39% France 39% Belgium 38% Canada 33% Poland 33% Russia 30% Sweden 60% Norway 57% United Kingdom 55% Japan 55% Denmark 51% Germany 50% Finland 49% Netherlands 49% Spain 48% South Korea 47% Turkey 46% Australia 46%

12 • 12 •

The open Internet offers significant opportunity

Digital Ad Spend

Based on Nielsen US DCR trends, eMarketer, ExchangeWire, IDC

30% 70%

Time Spent

50% 50%

Open Internet Google/Facebook

Vision

14 • 14 •

To be the leading advertising platform for the open internet

O U R V I S I O N :

15 • 15 •

The open Internet offers multiple benefits to advertisers & publishers

Choice

Advertisers and publishers choose which partners to work with and how

Neutrality

We have no conflicting interests with advertisers and publishers

Transparency

Advertisers and publishers determine how to measure success

Control

• f data

Advertisers and publishers keep control of their

• wn data

16 • 16 •

Performance Automation Control Demand Relevance Transparency Publishers Advertisers Consumers

Our open internet vision delivers benefits for all

Experience Consent

$800B+

Annual ecommerce sales

20,000

Advertisers

3,800+

Publishers connected to Criteo Direct Bidder

2B

Criteo IDs Incl.

1,000+

Brands And

200+

App Developers

Criteo Platform

18 • 18 •

Criteo Platform delivers a breadth of full-funnel advertising

• pportunities for commerce advertisers and brands

Awareness Consideration Conversion

Retail Media Marketing Solutions Supply-side Advertising Technology Retailers Advertisers

Criteo Platform

Web App Store Brands Buy-side Advertising Technology Campaigns Campaigns Campaigns Marketing Goals

19 • 19 •

Fueled by a unique commerce data set and powered by AI

Shopper Graph

1 Dynamic Creative Optimization+

AI Engine

Lookalike Finder Product Recommendations DCO+1 Predictive Bidding 120+ Intent signals/shopper 2B Criteo IDs 4.5B+ Products $800B eCommerce Sales

20 • 20 •

Full-funnel capability addressing the entire customer journey

Marketing Solutions

Awareness Marketing Goals Consideration Conversion

Ad Objectives Optimization Get people to consider your products or services Encourage interested people to purchase Generate interest in your products or services

Reach Views Traffic: Web, App App Installs Conversion: Web, App Store Conversions Visits Installs Purchase (Conversions) Brand Awareness Video Views

21 • 21 •

Objectives and Campaign Types replace CDR, CCA, CAM, and Manage

Criteo Marketing Solutions

CONSIDERATION CONVERSION

Criteo Marketing Solutions Marketing Goals

Ad Objective

Campaign examples

Dynamic Retargeting Customer Acquisition

Audience Match Manage* App Traffic Web Traffic App Installs Web Conversions App Conversions

Web traffic campaign for new customers, visitors or existing customers App traffic campaign for app users or existing customers App Installs campaign for existing web visitors or new users Web conversion campaign for new customers, visitors or existing customers App conversion campaigns for app users

• r existing customers

*Acquired in November 2018

22 • 22 •

Enabling brands to connect with key retail audiences at all stages of their shopping journey

Retail Media

Supply-side Advertising Technology

Awareness Consideration Conversion

Buy-side Advertising Technology

DEMAND SUPPLY

Standard Commerce Display Sponsored Products

Flexible range of targeting and creative options

23 • 23 •

A self-service, API and managed services solution purpose-built for retail

Criteo Retail Media

CONSIDERATION CONVERSION

Criteo Retail Media Marketing Goals

Ad Objective

Campaign examples

Sponsored Products Sponsored Products Extension Reseller Program

Commerce Display (Storetail)

Web Traffic Web Conversions

Web traffic campaign for new customers, visitors or existing customers Web conversion campaign for new customers, visitors or existing customers

Audience Extension ONSITE OFFSITE ONSITE OFFSITE OFFSITE Onsite = on a retailer’s site | Offsite = on a publisher’s site

Criteo Shopper Graph

25 • 25 •

A unified understanding of a shopper’s online journey and real-time intent data

Criteo Shopper Graph: the world’s largest shopper data set

Identity Graph: matching of 2Bn Criteo IDs cross device, same device, and online/offline Interest Map: anonymized shopper interest across products Measurement Network: conversion and sales across retailers

26 •

Identity Graph: matching of identifiers cross device, same device, and online/offline

Criteo’s advantages

• ~75% of clients participate
• 2B Criteo IDs
• Global coverage
• +10% average uplift

Open, transparent, secure, fair

• Encrypted and double-hashed personal

identifiable information (PII)

• Access at no additional cost

Participation

• Opt-in by sending hashed identifiers

via OneTag or App Events SDK

Persistent

• 95% Criteo IDs rely on long-term

identifiers such as hashed emails or app identifiers

• Less than 6% Criteo IDs rely on cookies
• nly

27 •

Interest Map: anonymized shopper interest across products

Criteo’s advantages

• Access to 4.5B+ products
• Large consumer reach worldwide
• Understand performance of

product attributes

• 120+ shopping intent signals evaluated

per shopper

• 21B product interactions per month
• 600TB daily shopper data

Open, transparent, secure, fair

• Data isolated unless opt-in
• All data anonymized
• No free riders
• Contribution capped at 15% of pool
• Access at no additional cost

Participation

• Opt-in to share anonymized data
• Opt-out to use client data only

28 •

Measurement Network: conversion and sales across retailers

Criteo’s advantages

• SKU-level sales attribution for

brands across retailers

• Deterministic measurement
• Nearly 100 participating retailers
• $800B+ annual ecommerce sales

Open, transparent, secure, fair

• All retailer data anonymized

Participation

• When clients work with us, data within

and across retailers is aggregated

29 • 29 •

Shopper Graph guiding principles

Openness

All clients contributing data can in return benefit from the collective dataset, as well as access relevant Criteo IDs and relevant KPIs of their campaigns to better inform and

• ptimize their advertising

Transparency

Our clients' contribution and sharing of data within the data pools are based on a clear and permission-based usage by Criteo for the mutual benefits of all participants in the Shopper Graph

Security

As always, we apply the highest data security and user privacy standards to the Shopper Graph

Fairness

The Shopper Graph is designed and governed in ways such that the value gained by participating clients largely exceeds their individual contribution to the graph

Central to our approach of the open Internet, and different from what clients may experience with walled-gardens, the design and governance of the Shopper Graph is based on strict and differentiated guiding principles:

30 • 30 •

• The identity graph incorporates our fundamental Privacy by

Design approach that protects and safeguards your customer data across all standards, processes, and protocols at Criteo

• Consumers can easily access our Privacy Policy and opt-out

using Ad Choices

• Criteo uses state of the art data-hashing algorithms to ensure

that no directly identifying information is stored in plain form, such as name, surname or email address

• Independently of how we receive emails,

the hashing process is automatically completed within our application

• Criteo only stores SHA256 hash of MD5 hash
• f emails: a hash of an email creates a series
• f characters that doesn’t permit individual
• identification. For example, a hash of

name@mail.com would be 98307a5ba02fa1072b8792f743bd8b51513605 56b8e5a6120fa9a04ae02c88c0

• User identifiers (IDFA, AAID, Criteo Cookie ID)

are randomly generated IDs that are not linked to or derived from any directly identifying information, and therefore don’t need to be hashed

• Both hashed emails and user identifiers are

considered “pseudonymous data”, a subcategory of personal data that does not allow the direct identification of the data subject

• Hashed emails and user identifiers are stored
• n Criteo’s owned and managed data

centers

Privacy: a key element of the Shopper Graph

WE DO WE DON’T

• Collect only the data that is

required to deliver our service

• Minimize data retention
• Keep only the last 90 days of data

in the graph

• Record any sensitive information
• Record directly identifying

information

• Store any original files containing

emails

• Use or store client’s audience data

for any other purpose

• Use any 3rd-party owned or

managed servers

AI Engine

32 • 32 •

Shopper-level optimization to drive CTR, CR, Order Value, or Product Margin

Proven machine-learning technology

> 20,000 tests/year

run on new performance algorithms and variables

AI Engine

Lookalike Finder Product Recommendation Dynamic Creative Optimization+ Predictive Bidding

33 • 33 •

Lookalike Finder algorithms create relevant audiences

Dedicated campaign Creation of a similar audience Audience previously targeted or exposed to a specific category of products or services Consumers likely to be interested in and engage

34 • 34 •

Leveraging the power of our shopper graph and world-class algorithms

Offering shoppers the best product discovery experience

✓ Campaign goal ✓ Visitor’s site navigation ✓ Recency and frequency of activity ✓ Product type, price, and category ✓ Most viewed products on retailer’s site ✓ And much more... The Criteo Engine recommends products based on: Products we show John John browses “Bomber Jacket”

• n Uniqlo’s site

Product recommendations

35 • 35 •

Enabling faster roll-out of Awareness and Consideration solutions

We have a best-in-class Creative Studio

Creative studio

36 • 36 •

Addressing full-funnel marketing goals

New DCO+ delivers flexible creative formats in real time

Dynamic creative Dynamic Brand creative

Banner Formats

Brand creative

AWARENESS CONSIDERATION CONVERSION

Brand & Product focus Product focus Brand focus

37 • 37 •

Our Predictive Bidding algorithms are industry-leading

The right bid for the right ad placement at the right time

User context Publisher interaction Product behavior

Predictive bidding

Second-price bidder optimization Standard bidder First-price bidder optimization

38 • 38 •

We have immense computational power for real-time processing

Sunnyvale CA Dallas TX Ashburn VA Paris (x2) Amsterdam (x2) Hong Kong Tokyo

~36,000 servers 9 data centers

Data center locations

2 Hadoop clusters

3,350 servers 240K terabytes storage capacity 530 terabytes of random-access memory

39 • 39 •

A privacy by design approach since day 1: data minimization approach Trust requires transparency and control (Adchoice icon, cross device

• ptout)

A European player with clear track record in privacy

Criteo AI Engine: Where Artificial Intelligence meets privacy

CPM/CPC model: an incentive to present relevant ads

Client Management Center

41 • 41 •

We provide enhanced self-service capabilities

Integrated and modular customer platform providing control, visibility and detailed transparency on campaigns

Client sign-up &

• nboarding

Autonomous, fast

• nboarding

Accelerated midmarket client additions Campaign Management More control for clients and agencies Productivity & retention Analytics & Insights More transparency and insights for clients Productivity & retention

42 • 42 •

Self-service, API and managed service delivery options

We offer a modular, flexible and progressively open platform

Supply Integrations Event Collection Billing Objective Coupons Audiences Creatives Catalogs APIs User Interfaces

Criteo Platform

Campaigns

Self-service tools

43 • 43 •

44 • 44 •

Benefiting from Criteo’s unique commerce audience data

Targeting the right users with new audience creation options

Users Visitors or Existing customers New customers New customers

• Web visitors or app users
• Customer contact lists
• Offline buyers
• Platform audiences

Marketing Goals Awareness Consideration

• Awareness

Consideration Conversion

• Consideration

Conversion Custom Audiences Similar Audiences Commerce Audiences Audiences

• Similar to your recent

web and app users using Lookalike Finder AI technology

• Choose from 140+

product interest categories within our Shopper Graph commerce data set

45 • 45 •

46 • 46 •

47 • 47 •

48 • 48 •

For self-service client activation

A full End-To-End Onboarding Flow for Midmarket

• 1. Contact form
• 2. Business details
• 3. Payment & billing details
• 4. Accept T&C’s
• 1. Choose the objective
• 2. Identify target audience
• 3. Finalize campaign details

(Budget, Bid Strategy, Creative, Tracking)

• 1. Onboarding tools for new

clients

• 2. OneTag Integration

(Troubleshooting & monitoring)

• 3. Product catalog (Monitoring,

Troubleshooting, Advanced settings)

• 1. Create new banners from scratch
• 2. Update existing creative
• 3. Track your creatives
• 4. Manage promotions with coupons

Solutions

Criteo Marketing Solutions

51 • 51 •

Criteo Dynamic Retargeting

Criteo Marketing Solutions

Revenue model

• Revenue = Clicks x CPC
• Traffic Acquisition Cost (TAC) = CPM x impressions
• Revenue ex TAC = Revenues – TAC
• Revenue ex-TAC margin: Approx. 40%

What it does

• Connect across web, mobile, app, social, and video using 120 intent signals
• Optimize with continuous machine-learning against business objectives
• Increase mobile app engagement

Benefits

• Bring shoppers back to buy to drive more sales and increase profitability
• Gain access to the best inventory
• Engage shoppers by delivering the right ad at the right price and device with personalized

product recommendations and 17 trillion ad set variations

52 • 52 •

Criteo Customer Acquisition

Criteo Marketing Solutions

What it does

• Targets highly relevant shoppers using historic shopping and browsing events from

Criteo’s identity graph

• Reaches relevant new customers with user-centric personalized product recommendations
• Only qualifies relevant shoppers, based on Criteo’s interest map, based on your optimal

customer using unique, shopper-scoring techniques

Benefits

• Generate significant new revenue from relevant new customers
• Discover new customers across a pool that covers 72% of the world’s online

shoppers

• Drive maximum ROI with the industry’s only performance-based acquisition model

Pricing

• CPC | CPM*

*tentative

53 • 53 •

Criteo Audience Match

Criteo Marketing Solutions

What it does

• Identify audience and campaign objective
• Pass the audience list to be targeted
• Match audience with Criteo’s identity graph

with 4B+ global device IDs

• Deliver personalized ads to drive engaged

traffic to the advertiser’s website

Benefits

• Boost sales by re-engaging existing

shoppers

• Bring qualified traffic back to the

advertiser’s website

• Capitalize on market leading match rate
• f up to 60%

Use cases

Offline to online

Offline Buyers Card Holders

Loyalty

Audiences that may soon churn

Seasonal

Seasonal Buyers

Top Sellers

Lapsed Shoppers

Upsell

Bundle Offer

Upgrade

Audiences likely to upgrade

*tentative

Pricing

• CPC | CPM*

54 • 54 •

Manage

Criteo Marketing Solutions

Creative Formats & Supply

• Primarily use/edit existing advertiser formats
• Single resource dedicated to CS
• ~40% video
• 100% RTB supply

Pricing

• Sell on a CPI*, optimize to CPA**
• Ability to sell on CPC or CPM for brand

campaigns

* Cost per Install ** Cost per Action

Criteo Retail Media

56 • 56 •

Sponsored Products

Criteo Retail Media

DYSON SUPERSONIC HAIR DRYER, FUCHSIA/IRON

259,99 €

Benefits

Offer brands native product recommendation based placements that increase conversion personalized recommendations based on shopper’s unique journey

Budget

Trade and Performance

Pricing

CPC

57 • 57 •

398,25 €

DYSON Aspirateur balai DYSON V7 Animal

Sponsored Products Extension

Criteo Retail Media

Benefits

Enable brands to retarget customers with relevant product recommendations across Criteo’s premium publisher network personalized recommendations based on shopper’s unique journey

Budget

Trade and Performance

Pricing

CPC

58 • 58 •

Benefits for sellers on the Marketplace

• Access best-in-class, commerce marketing technology
• Drive incremental, high-quality traffic and more sales
• Activate campaigns immediately – no integration required

Benefits for Marketplaces

• Unlock new revenue by reselling Criteo Dynamic Retargeting
• Boost overall Gross Merchandise Value (GMV)
• Increase merchant loyalty with proven technology for sales growth

Criteo Retail Media

Criteo Reseller Program

59 • 59 •

DYSON SUPERSONIC HAIR DRYER, FUCHSIA/IRON

259,99 €

Commerce Display

Criteo Retail Media

Benefits

Enable brands to increase consideration and conversion with ecommerce display placements, including guaranteed inventory dynamic ecommerce features based on product catalog, availability, and other factors

Budget

Shopper Marketing and National Media

Pricing

CPM

60 • 60 •

Audience Extension

Criteo Retail Media

DISCOVER

branded, standard display

Benefits

Enable brands to build shopper audience segments and target them across Criteo’s premium publisher network

Budget

National Media

Pricing

CPM

Clients & Go-to-market approach

62 • 62 •

A large opportunity to win new clients

<25%

Midmarket penetration

~50%

Large Clients penetration

~60,000 addressable clients worldwide

in Retail, Travel and Classifieds (excluding brands)

63 • 63 •

Direct relationships with many premium commerce and brand clients

64 • 64 •

A tailored go-to-market approach to best serve our clients

A $200K+ B $50K+ D $10K+ E $5K+ F <$5K C $20K+ Large Clients Upper Mid- Market Lower Mid- Market

Monthly ad spend

Highly customized service and proactive insights/proposals Efficient, high quality, scalable and automated service to the highest number of clients

Client tiering Objectives

• Adapt sales organization to a multi-solution offering
• Provide the right level of service to each client
• Scale operations and enhance profitability

Consultative sales Telesales Self-service platform

1 2 3

Publisher inventory

66 • 66 •

Extensive supply partnerships ensures audience access

Direct partnerships

3,800+ Premium publishers

Exchange partners

Long-tail & emerging formats

Closed environments

Additional Reach

• Flexible buying technology: RTB/S2S, Criteo direct bidder, SDK, API
• Any relevant creative formats/environment: IAB, Native, In-App, Video, Google AMP

67 • 67 •

The publisher environment is constantly evolving

Transition to Mobile Social Native Multiple Devices Header Bidding Ad Blocking

Changing consumer behavior Evolving technology

Programmatic

Our drives more value for publishers

In App

68 • 68 •

We have always delivered user-friendly ads

Ad blocking offers an opportunity for players with:

• The right business model
• The right technology stack
• The right expertise in user privacy
• Premium demand

Our Position

• Promote acceptable ad programs
• Invest in native formats
• Support an open tracking standard
• Define standards for retargeting

69 • 69 •

• Criteo Direct Bidder (CDB) allows Criteo to bid on publisher inventory directly through the ad server without the need to

funnel demand through Supply Side Platforms (SSPs) or exchanges.

• Benefits for the publisher:
• all of the Criteo bid goes to the publisher; none is taken by the SSP for fees (typically 10%-20%)
• user matching between the Publisher and Criteo is much more timely and complete than matching reliant on a third

party

• +20-40% spend with publishers on the same inventory that was previously accessed through RTB
• Launched in Q2 2017, already connected to 3,800 publishers and over 200 app developers at the end of Q2 2019

Criteo Direct Bidder: Direct access to Criteo’s unique demand

Competitive positioning

71 • 71 •

Advertising technology positioning

CLOSED OPEN WORKFLOW AUTOMATION PREDICTIVE PERFORMANCE

Note: based on Criteo’s qualitative assessment

72 •

DSP Retargeting Mobile Advertising Sponsored Products Social Advertising Ad Servers Email Marketing Marketing Automation Social Media Marketing Web Content Management Data Management Platform Analytics App Measurement Data Providers Tag Management Feed Management Digital Commerce Platform

Adtech: Paid Media

Criteo wins 90% of head-to-head tests

Martech: Owned and Earned Media

Criteo complements these vendors

Data and Operations Infrastructure

Criteo integrates with these technologies

Criteo in the Adtech/Martech Landscape

Strategy & Organization

74 • 74 •

• Scale large and midmarket clients
• Win and retain clients with our self-service

platform

• Add more brand and retailer clients globally

Grow the customer base Increase our value for clients and partners

• Enhance AI/Deep-learning technology
• Grow and leverage Criteo Shopper Graph
• Broaden self-service capabilities
• Expand Marketing Solutions & Criteo Retail Media
• Broaden supply of quality inventory

Our growth strategy is based on two strong pillars

75 • 75 •

Further strengthening the leading advertising platform for the open Internet

We are transforming our Company to support our strategic goals

Further Broaden our Suite of Solutions Deliver Solutions on Self-Service, API or Managed-Service Adapt Go-to-Market

76 • 76 •

One-size-fits-all go-to-market approach Product and Sales working in silos Dedicated go-to-market per product line Customer-centric integrated product roadmap Seperate Orgs for Large Customers & Mid-Market Fragmented

• perations

Unified regional leadership Integrated business platform Multi-layer

• rganization

Lean and agile

• rganization

We are evolving our capabilities to accelerate transformation

77 • 77 •

New blueprint: unified customer conversation

AMERICAS APAC EMEA SUPPLY RETAIL MEDIA APPS & STORE WEB OPERATIONS MARKETING CUSTOMER

78 • 78 •

We invest in growing areas in digital advertising – and beyond

• Leverage strong growth of apps
• Store advertising
• Build flexible and modular client platform
• Complete expansion of solution suite

* Prospective

79 • 79 •

Increased focus on profitability going forward

2019 is a year of transition with higher focus on profitability

More scalable way to sell entire product suite Increased focus on effective cost management Maintain 2019 profitability outlook, increased focus going forward

Track-record of execution & Financials

81 • 81 •

1 We define Revenue ex-TAC as our revenue excluding traffic acquisition costs, or TAC, generated over the applicable measurement period. Revenue ex-TAC is not a measure calculated in accordance with U.S. GAAP.

Please see the Appendices for a reconciliation of Revenue ex-TAC to Revenue, the most directly comparable GAAP measure.

2 We define Adjusted EBITDA as our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense,

pension service costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. Please see the Appendices for a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.

147 238 403 534 730 941 966

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

22 42 105 143 225 310 321

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Solid financial track record since IPO

Revenue ex-TAC1 ($ millions) Adjusted EBITDA2 ($ million)

37%

CAGR

High growth Expanding profitability

82 • 82 •

11.0 11.9 12.9 14.5 15.4 16.4 17.3 18.1 18.5 19.0 19.2 19.4 19.4 19.7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

We have a large client base and maintain high retention

Client Retention Rate1 Number of clients (in thousands)

1 The retention rate represents the percentage of live clients during the previous quarter that continued to be live clients during the current quarter. For all solutions combined.

83 • 83 •

941 966

FY2017 FY2018

+2%2

1 Revenue ex-TAC, Adjusted EBITDA, and Free Cash Flow are not measures calculated in accordance with U.S. GAAP. We have provided a reconciliation of those measures to the most

directly comparable GAAP measures, which is available in the Appendix slides

2 At constant currency

Key figures – FY 2018

REVENUE EX-TAC1 ($M) ADJUSTED EBITDA1 ($M) FREE CASH FLOW1 ($M)

33% margin

(% of Revenue ex-TAC)

42%

• f Adj. EBITDA

310 321

FY2017 FY2018

137 135

FY2017 FY2018

84 • 84 •

471 460

H1 2018 H1 2019

+1%**

* Revenue ex-TAC, Adjusted EBITDA, and Free Cash Flow are not measures calculated in accordance with U.S. GAAP. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides. ** At constant currency

Key figures – H1 2019

REVENUE EX-TAC* ($M) ADJUSTED EBITDA* ($M) FREE CASH FLOW* ($M)

27.3%

• f Revenue ex-TAC

51%

• f Adj. EBITDA

147 125

H1 2018 H1 2019

74 64

H1 2018 H1 2019

85 • 85 •

Solid financial model: doubled Adj. EBITDA margin since IPO

As % of Revenue ex-TAC FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 LTM Q2 2018 LTM Q2 2019 Revenue ex-TAC 100% 100% 100% 100% 100% 100% 100% 100% Other cost of revenue* 7.9% 6.6% 6.1% 6.4% 6.9% 6.7% 6.3% 7.3% Gross margin 92.1% 93.4% 93.9% 93.6% 93.1% 93.3% 93.7% 92.7% R&D* 14.9% 12.5% 13.4% 14.2% 14.7% 15.2% 14.9% 15.2% S&O* 43.6% 39.9% 39.8% 35.3% 34.8% 33.6% 33.1% 34.5% G&A* 16.0% 14.8% 13.8% 13.2% 10.7% 11.3% 10.5% 11.7% Adjusted EBITDA 17.5% 26.2% 26.9% 30.8% 32.9% 33.2% 35.2% 35.2% Revenue ex-TAC margin** 40.3% 40.8% 40.4% 40.6% 41.0% 42.0% 42.0% 41.8%

* Cost of revenue and operating expenses are expressed on a Non-GAAP basis, which excludes the impact of equity awards compensation expense, pension service costs, depreciation and amortization, acquisition-related costs, restructuring and deferred price consideration. ** As a % of revenue

86 • 86 •

Technology innovation Broader supply Upselling new solutions Automation & self-service

Significant drivers of further operating leverage

Powered by a combination of

87 • 87 •

Robust operating cash flow enables smart investment

INVEST DEVELOP & GROW CASH SCALE PROFITS SMART INVESTING

88 • 88 •

Robust Free Cash Flow and strong conversion into Adjusted EBITDA

16,032 33,436 33,954 53,526 51,960 22,494 20,600 40,192 43,536 20,172 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• 10,000

20,000 30,000 40,000 50,000 60,000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

28% 62% 43% 45% 67% 33% 30% 38% 63% 36%

Average FCF to Adjusted EBITDA conversion FCF to Adjusted EBITDA conversion Free Cash Flow US$ ‘000

89 • 89 •

Our financial structure offers significant flexibility

* Based on a $1.5bn market capitalization, pursuant to the 2019 AGM authorization to issue up to 6.6m shares ** For M&A and to satisfy employee equity plan vesting

Strong balance sheet

1,597 1,750

Dec 2018 June 2019 Total assets (in $M) Financial liabilities (in $M) Very low debt

4 4

Dec 2018 June 2019 Cash & cash equivalents (in $M) Significant cash pile

364 422

Dec 2018 June 2019

>20%

• f assets

$422M

cash

As of June 30, 2019

€350M

committed financing

$150M

equity raise capacity*

Share buy-back

authorization**

90 • 90 •

Flexible capital allocation more geared to shareholder returns

• –

– –

• Organic growth

M&A

• Share

repurchase program

91 • 91 •

Large market

• pportunity

Clear vision Competitive moats Proven track-record Attractive financial profile

Investment thesis

Digital advertising is large and growing fast Be the leading advertising platform for the open Internet Shopper Data Platform Technology Scale/Reach Large client base ~90% client retention for all solutions combined High profitability and growing Strong cash flow

VP, Head of Investor Relations 32, rue Blanche 75009 Paris +33 1 7621 2166 e.lassalle@criteo.com Director, Investor Relations 387 Park Ave South, 12th Floor New York, NY 10016 +1 917 837 8617 f.edelmann@criteo.com

Friederike Edelmann Edouard Lassalle Investor Relations Contacts: IR@Criteo.com

Appendix

94 • 94 •

($ in thousands) Q1’17 Q2’17 Q3'17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 H1’18 H1’19 Revenue

516,667 542,022 563,973 674,031 564,164 537,185 528,869

670,096 1,101,349 1,086,270 Less: Traffic acquisition costs

306,693 322,200 329,576 397,087 323,746 306,963 305,387

398,238 630,709 626,658 Revenue ex-TAC

209,974 219,822 234,397 276,944 240,418 230,222 223,482

271,858 470,640 459,612

Revenue ex-TAC reconciliation

($ in thousands) 2017 2018 Revenue 2,296,692 2,300,314 Less: Traffic acquisition costs 1,355,556 1,334,334 Revenue ex-TAC 941,136 965,980

95 • 95 •

Adjusted EBITDA reconciliation

($ in thousands) Q1’17 Q2’17 Q3'17 Q4'17 Q1’18 Q2’18 Q3’18 Q4’18 H1’18 H1’19 2017 2018 Net income

14,518 7,505 22,269 52,368 21,090 14,707 17,948 42,134 35,797 33,938 96,659 95,879

Adjustments: Financial (income) expense, net

2,333 2,094 2,886 2,221 1,325 1,006 1,007 1,746 2,331 3,328 9,534 5,084

Provision for income taxes

4,201 3,665 7,858 15,927 12,386 8,638 6,821 18,299 21,024 15,701 31,651 46,144

Equity awards compensation expense

14,940 14,918 22,028 20,464 19,303 20,245 17,261 10,267 39,548 28,273 72,351 67,076

Pension service costs

290 299 320 321 434 419 419 419 853 785 1,231 1,691

Depreciation and amortization expense

20,167 22,306 23,755 24,570 23,646 23,560 25,619 30,675 47,206 40,611 90,796 103,500

Acquisition-related costs

6

• 516

1,222

• 6

1,738

Restructuring

• 3,299
• 4,057

(252) 199

• (53)

2,618 7,356 (53)

Total net adjustments

41,936 46,581 56,847 67,560 56,842 54,067 51,643 62,628 110,909 91,316 212,925 225,180

Adjusted EBITDA

56,454 54,086 79,116 119,928 77,932 68,774 69,591 104,762 146,706 125,254 309,584 321,059

96 • 96 •

Free cash flow reconciliation

($ in thousands) H1’18 H1’19 CASH FROM OPERATING ACTIVITIES 124,868 120,184 Acquisition of intangible assets, property, plant and equipment (26,293) (42,104) Change in accounts payable related to intangible assets, property, plant and equipment (24,121) (14,372) FREE CASH FLOW 74,454 63,708